Demand for co-working spaces to triple in next three years, says report

By: | Published: June 22, 2018 12:13 AM

The demand for flexible and co-working spaces will triple in India in the next three years, driven by start-ups as well as big corporates, Knight Frank said in a report.

Demand for co-working spaces to triple in next three years

The demand for flexible and co-working spaces will triple in India in the next three years, driven by start-ups as well as big corporates, Knight Frank said in a report.
Co-working companies took up two million sq ft of commercial office space in the first quarter of 2018, which is more than the 1.8 million sq ft they took up in 2017, it said.

Currently, NCR, Mumbai and Bengaluru house most of the co-working stock in India, followed by Pune and Kolkata. During January-March 2018, the highest co-working transaction activity was witnessed in the Bengaluru, NCR and Hyderabad markets, which contributed 43%, 16% and 15%, respectively.

Earlier, co-working was the domain of start-ups, SMEs and freelance workers who needed the flexibility of tenure as well as cost that a standard leased office space could not offer. “However, the advantages of the co-working proposition have caught the attention of the more established and mainstream occupier. Approximately, 50% of the client roster of an Indian co-working operator is made up of big corporates. This can rise to as high as 80% in the more premium priced offerings,” the report said.

Due to the changing perception of the office, the workplace is being viewed as an instrument that could drive a dynamic and vibrant culture of corporate productivity.

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